Correlation Between Thermador Groupe and Clasquin
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Clasquin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thermador Groupe and Clasquin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermador Groupe SA and Clasquin, you can compare the effects of market volatilities on Thermador Groupe and Clasquin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thermador Groupe with a short position of Clasquin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Clasquin.
Diversification Opportunities for Thermador Groupe and Clasquin
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thermador and Clasquin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Clasquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clasquin and Thermador Groupe is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thermador Groupe SA are associated (or correlated) with Clasquin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clasquin has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Clasquin go up and down completely randomly.
Pair Corralation between Thermador Groupe and Clasquin
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Clasquin. In addition to that, Thermador Groupe is 16.07 times more volatile than Clasquin. It trades about -0.1 of its total potential returns per unit of risk. Clasquin is currently generating about 0.11 per unit of volatility. If you would invest 14,104 in Clasquin on August 26, 2024 and sell it today you would earn a total of 41.00 from holding Clasquin or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Clasquin
Performance |
| Timeline |
| Thermador Groupe |
| Clasquin |
Thermador Groupe and Clasquin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Clasquin
The main advantage of trading using opposite Thermador Groupe and Clasquin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Clasquin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Clasquin will offset losses from the drop in Clasquin's long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
| Clasquin vs. Thermador Groupe SA | Clasquin vs. Bastide Le Confort | Clasquin vs. Jacquet Metal Service | Clasquin vs. Chargeurs SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |